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Secrets Of Starting A Profitable Flower Vending Operation
Selling flowers at strategic locations has become a highly
profitable retail business for many enterprising individuals.
These entrepreneurs are taking advantage of a market that is, for
the most part, impulsive in nature. Many people buy flowers on
the spur of the moment, and the presence of a flower vendor is
usually their inspiration.
Often, men on their way to a date will see a roadside flower
vendor, and suddenly find the idea of taking flowers with him
quite appealing. The same holds true for many men heading home
from work. If they're married, these men will often purchase
flowers from roadside vendors for their wives. The flowers are
attractive, not as expensive as an arrangement from a florist,
and the buyer doesn't even have to get out of his car.
Women are also potential customers for flower vendors. A
woman will buy flowers to add color and decoration to her house
or apartment, or sometimes, just to cheer up a friend. In any
case, the purchase is usually made on impulse, brought about by
the availability of a flower vendor.
Starting a flower vending business is not difficult. No
previous experience is necessary. There's only a minimal initial
investment required, and you won't need a lot of equipment. What
you will need is an adequate supply of fresh, attractive flowers,
a good location for selling, and a cheerful disposition. After
all, you will be dealing directly with people, so a good
disposition is a necessity.
You can begin as a home-based operation with an investment
of as little as $300. If you live close enough to the market you
want to reach, your own garage can serve as storage space as well
as your preparation area. Your operating expenses will be
minimal, and you'll have the opportunity to realize a high margin
of profits.
Depending on the size of your investment (both time and
money) and the size of your trade area, a flower vending business
could net anywhere from $10,000 to $75,000 per year. It can be an
extremely high profit business, if you choose your selling
locations wisely, and offer only fresh, attractive flowers.
BUSINESS OVERVIEW
Successful operation of any small business depends on
several key factors. Perhaps the most important is the ability to
be a good business manager. Although no experience is necessary
to start-up a flower vending business, some small business
management training could give you the edge needed to insure
success. Most community colleges offer night school courses in
small business management and, if you are unsure about your
business knowledge and/or management skills, enrollment in such a
course would be a good idea.
Here are other basic steps involved in the successful
operation of a flower vending business:
(1) Know your market. Proper knowledge of your market will
enable you to set-up at the best locations. You'll need to know
the high-traffic areas as well as the time of day traffic is at
its peak in order to take advantage of a roadside operation.
You'll also need to investigate other potential locations such as
restaurants, malls, local festivals and flea markets.
(2) Obtain a dependable source for fresh flowers. Your
business depends on the quality of your merchandise. And since
you are selling flowers, they must be fresh and attractive. You
should locate a quality wholesaler and establish a sound working
relationship. You should also have some knowledge of the types of
flowers people are most likely to purchase from a vendor.
(3) Establish a workable preparation area. Ideally, your
preparation area should be centrally located within your sales
territory. The space needed should be adequate for storing
flowers and materials used for the preparation of bouquets, as
well as for the preparation itself.
(4) Hire the right help. Unless you plan a one person
operation you'll need to hire some dependable helpers. The people
you hire should be outgoing and trustworthy with the ability to
deal with customers in a professional and courteous manner. If
your flower vending business is to be successful and highly
profitable, you'll probably need to have other people helping
you. One example is a successful flower vendor in Washington
State who employs young people, pays them minimum wages, and
enjoys a brisk business at several key locations.
(5) Advertise and promote your business. Effective
advertising and promotion can help generate sales and profits.
Knowing how to advertise and promote your business, especially in
the beginning, is a key step in the success of any business
operation.
All of these steps can be taken with a relatively small
initial investment, and your flower vending business can be in
operation, and realizing a profit, in just a few weeks. However,
prospective entrepreneurs should also be aware of, and comply
with, any rules and regulations that apply to this particular
business in their area.
Depending on the location(s) of your flower vending
business, you may need a license to operate. If you plan to set-
up a flower vending stand on a city street, or any roadside
operation within city limits, you'll most likely need to get a
permit. The best thing to do is consult a trusted attorney, or
contact the business-license department in the city your market
covers to find out what licensing requirements you must meet.
If you plan to sell flowers in restaurants and nightclubs,
it is usually not necessary to have a license. Also, if your
roadside operations fall outside the city limits, you probably
won't need a license because most counties don't issue them.
Again, you should check with your attorney, or the proper
licensing authorities in your area before you start selling
flowers.
Another consideration for a new business owner and employer
is taxes. As an operator of a business you will be responsible
for collecting and sending in various state and federal taxes, as
well as certain taxes you will have to pay yourself. If you are
not familiar with your tax responsibilities as a business owner,
consult a qualified accountant or contact your local IRS office
to get the information you need.
You should also consult with an accountant as to the type
and arrangement of bookkeeping and record keeping best suited for
your flower vending business. Records of your business operations
are, of course, helpful in the successful management of the
business.
These records need to be as accurate and permanent as
possible in order to ascertain any tax liabilities. They should
include business income, deductions, credits, and any employee
information. As well as any other information required by
federal, state and local regulations.
EQUIPMENT AND INVENTORY
Since a flower vending business does not require an
abundance of sophisticated equipment, start-up costs can be kept
to a minimum. The basic equipment necessary should not cost more
than $200 and can usually be found at a wholesale florist supply
house. You can also get your supplies and equipment from several
firms that cater to florists. You should be able to find a
complete directory of such firms at your local library. You can
also contact several florists (not necessarily in your market)
and obtain this information.
For the preparation of your flowers and floral arrangements,
you'll need stem cutters and a supply of cellophane or florist's
tissue. You will also need several plastic buckets to keep the
flowers in water and fresh while being transported as well as on
your selling sites.
To prepare the flowers for selling, you will need a
preparation area. This area should be cool and shady to help keep
your flowers as fresh as possible. As mentioned earlier, a
location central to your area of sales is most desirable. If your
own garage fits that description, you won't have the added
expense of renting space.
Your preparation area will require several storage
containers and a table. Some refrigerated coolers may be
necessary, but since most flower vending businesses pick up their
flowers on a daily basis, and sell them as quickly as possible,
that sort of storage requirement should not be excessive.
However, during the summer and winter months, you may need an
air-conditioner and portable heater to keep your flowers in
salable condition. If you don't already have these items, you can
count them as a business expense and they are tax deductible.
Your inventory will consist of flowers. You can purchase
these from wholesalers found in most major cities. You can find
these suppliers by looking in the Yellow Pages of your area's
metropolitan phone directory. Look under "Florists, Wholesale."
Since you will probably have some flowers left over after
each day's sales, it is essential that your inventory be fresh
when purchased from the wholesaler. You can check the freshness
of your flowers by examining the heads of roses to see if they
are tight to your touch. Also, if the blossom appears purple
around the edges, the flower is probably too old. When buying
carnations, look to see if they are firm and heavy-stemmed. If
carnations are somewhat discolored, don't buy them, because they
probably aren't fresh.
The largest part of your inventory will most likely be
roses. Roses are the most desired flower, and they are expensive.
Prices will vary with the season and area of purchase.
Carnations will also make up a substantial portion of your
inventory. These flowers, while very attractive and popular, are
much less expensive than roses.
Other flowers you may want to add to your inventory are
gardenias, tulips, daffodils, and orchids. Some of these flowers
are expensive and usually appeal to an older set of customers, so
don't go overboard when dealing with your supplier. Roses and
carnations will be your best sellers.
Your best sales months will be during the holidays so you
will have to make sure you have an adequate supply of flowers.
You'll also want to have a supply of appropriate flowers to match
the specific holiday, lilies for Easter, poinsettias for
Christmas and so on.
CHOOSING A LOCATION
Once you have a marketable inventory, you will need to set-
up in a good location. If you choose the wrong location your
business will not be successful. For flower vending, the two best
selling locations are restaurants and roadsides/street corners.
Restaurants are good selling locations if they attract large
lunch and dinner crowds. Especially good restaurant locations are
those with specific themes. French, Italian and Mexican
restaurants are usually profitable locations for flower vendors.
You'll also find successful flower vendors in upscale lounges and
taverns.
In general, restaurants and lounges with a quiet and
romantic ambiance, are usually conducive to flower vending. Many
restaurants are attracted to the idea of flower vending at their
places of business because it offers an extra "romantic" touch to
their service. Usually, the management of a restaurant will
charge the flower vendor only a nominal fee. In some cases, the
fee may simply be a few flowers to arrange and display throughout
the restaurant.
For street-selling locations, freeway exits and stoplights
on main streets are preferred. These areas represent the highest
amount of traffic therefore, the largest number of potential
customers. Ideally, your locations should be along streets,
highways and exits that feature a great deal of late afternoon
and/or early evening rush hour traffic. These conditions are
ideal if you can find an area where the traffic must come to a
stop, or at least has to slow down. Your location must be plainly
visible so that oncoming drivers will be able to see you in
enough time to get out of traffic and pull off the road.
It is important that you stay away from roadside locations
that could limit the ability, or desire, of your customers to
reach you. Never set-up at dangerous intersections, along steep
hills and other areas that could be hazardous. You could lose a
lot of business if potential customers don't stop because they
fear getting struck by other traffic.
When selling on city streets the most desirable locations
are those that take advantage of both automobile traffic and
pedestrians. You should try to find a spot in an area of heavy
pedestrian traffic as well as vehicle traffic. Business will
usually be better when people are on their way home. If you know
which side of the street is the "going-home" side, that's where
you should set-up.
Operating a flower vending business allows you more
flexibility than many other businesses have. You won't have to
stay in one location, if it proves unprofitable. You can move
around as often as it takes to find the locations that afford you
the most success.
You may have to experiment in the beginning. Simply keep a
record of the number of flowers sold at each location and the
number of hours at each spot. From these records you'll be able
to determine the most satisfactory locations for your business.
You will also have a better idea as to the actual inventory you
need so you can cut down on the amount of excess that results in
spoilage.
HIRING PERSONNEL
In order to be successful in the flower vending business, it
may be necessary to hire help. If that's the case, not just
anybody will do. As the owner/manager of the business you will
have to hire people who are right for the job of selling flowers.
Although this may seem difficult, there are some guidelines that
many flower vending businesses follow quite successfully.
Students and people seeking part-time jobs are the most
likely candidates for employment in the flower vending business.
Your interviews with such prospective help should be designed to
ascertain if they are trustworthy and dependable. You also need
salespeople who are outgoing, enjoy interacting with other
people, and who are well-motivated.
In most cases, if you are selling flowers in restaurants,
attractive young women are the best salespeople. Usually these
women are dressed in a costume that serves to identify your
business. The most basic sort of identifying costume, or dress,
would be a white blouse and dark skirt. As the business
"blossoms" you may want to invest in more elaborate costumes
depending on the image you want for your business as well as the
particular restaurant theme.
Usually, an employer can find adequate part-time help simply
by placing a catchy ad in the help-wanted section of the
classifieds of the local newspaper. The ad should allude to
making "good money" for "enjoyable" part-time work. Response to
the ad should be such that you can be selective in hiring the
help you need. You should also get excellent response with an ad
in college newspapers. And you can try placing the ads on school
bulletin boards to elicit even more response.
Once you begin interviewing prospective employees, it is
imperative that you have them fill out an application form and
supply you with at least three references. And don't just read
the references -- check them out. You should know as much as you
can about your help before you hire them.
Once hired, make sure all employees know exactly what their
duties and responsibilities are, as well as their salaries. You
should also plan to review each employee's performance on a
regular basis. These reviews, or evaluations, should be shared
with your employees so they will know how they are doing and how
they can improve, if warranted.
DAY-TO-DAY OPERATIONS
Operating a flower vending business does not require hours
of strenuous physical labor. However, that does not mean flower
vendors lead a life of leisure. With any business there are
demands that require time and effort. The flower vending business
is no exception. You and/or your employees will need to be well
organized from the time of preparation until the day's selling is
done.
Preparing flowers for sale is an essential part of a flower
vendor's work day. In order to be salable, your flowers must
appear fresh and colorful. Also, every bouquet you plan to sell
must be arranged in an appealing fashion. Therefore, you should
allow enough time for preparation so that the job is done right.
But, don't overdo it. If you spend too much time on flower
preparation, you could be cutting into valuable selling time.
The actual preparation phase should take as little time as
possible without sacrificing quality of work. To be as efficient
as possible with your preparation time you should organize the
process. You can do this in a step-by-step manner.
First of all, you should plan to remove many of the thorns
from each rose stem. About half of the thorns, beginning at the
bottom of each stem, should be removed. Then, you will need to
clip a small portion from the bottom of each stem. This will
allow the flowers to absorb water and retain their freshness and
color. You can do the clipping with a sharpened knife.
Once you have de-thorned and clipped your roses, you will
need to place them in relatively warm water. The water
temperature should be about 105 degrees. You can leave them in
the water for up to two hours and they will be refreshed and
colorful when you are ready for the day's vending. All your other
flowers must also be properly cared for and prepared so that your
entire inventory is appealing to your customers.
Your preparation process should not involve much
"decoration." People buying single flowers usually won't expect
frills such as ribbons or bows. However, you should have such
adornments on hand at your selling location in case some
customers request them. It's also a good idea to supply your
sales team with pins, if corsages and/or short-stemmed flowers
are part of your inventory.
Any bouquets you sell should be wrapped in tissue or green
cellophane. Not only do the flowers keep better wrapped, they
also appear more attractive and are more appealing as gifts.
Unwrapped bouquets do not have a particularly neat appearance,
and they probably won't stay fresh and colorful as long as they
would if wrapped.
How much time should all this preparation take? Well, most
successful flower vending businesses spend no more than two to
three hours a day buying and preparing flowers. It will probably
take a new business a couple of months to become organized and
experienced enough to cut buying and preparation time down to two
hours per day. That will happen once you learn how to utilize the
early morning hours, after the flowers have been purchased from
the wholesaler, for preparation of the flowers and organizing
your salespeople.
The best times to sell depends on location. Street corner
and roadside vending hours are most successful during the late
afternoon and early evening hours when most workers are heading
home. Most people are more apt to take the time to make such a
purchase as flowers on their way from work than they are on their
way to work. Weekends have also proven very successful for many
flower vending businesses that operate all day on Saturdays and
Sundays.
If you are selling in restaurants, the most profitable time
will be during dinner hours. In some cases, lunch crowds will buy
flowers, but usually the evening diners will be your best
customers in a restaurant. Your salespeople should plan on up to
three seatings of diners each evening in a popular restaurant.
Between seatings, your salespeople can canvass the immediate
neighborhood for other potential customers, and then return for
the next seating at the restaurant. This type of selling will
take some practice and experience, but a good salesperson will
soon learn how to make the most of his time and inventory.
It is important that you and your sales team be as poised
and as professional as possible when selling at any location,
especially in restaurants. In restaurants, a low-key approach is
much better than an extremely aggressive sales pitch. Be polite
and friendly, and utilize flattery as an effective tool. Approach
the man in a couple and in a casual and friendly manner ask if he
would like to compliment his lady companion with a beautiful
flower. Most men will then buy a rose for their dining
companions.
ADVERTISING
A flower vending business is unlike many small and part-time
businesses in that the usual forms of advertising -- newspaper,
radio, TV, and so on -- are not really effective. Since your
selling locations may change from time to time, and since buying
flowers from a flower vendor is usually done on impulse, you'll
need a more immediate form of advertising. It should be something
that draws attention to your business as your customers approach
your selling location.
For street corner and roadside vending, signs are the best
form of advertising. All that's needed is something to let
potential customers know you are there, and that you are selling
flowers. Seeing your sign, many people will act on impulse and
stop to see what you have to offer.
The sign(s) should be hand-made rather than professionally
painted. You don't want to appear like a big business. And a
hand-made sign will give the impression of a small, family-type
operation which usually means more reasonable prices.
In some cases, a new business can get publicity from a local
newspaper. If you are selling flowers at a restaurant, you can
try getting such publicity by alerting the local newspaper. Most
local newspapers use information of this sort as fill, and it
could prove valuable to your business.
If, as part of a special promotion -- a grand opening, or a
special day such as Valentine's Day -- you will be selling
flowers at a business location, send the information to the
editor of your local newspaper. You may also want to include a
picture of you and/or your sales people. The paper may not decide
to run the story, but there's a good chance they will. Either
way, you have nothing to lose, and a bit of publicity to gain.
SUCCESS ANALYSIS
Eight contributing factors are measured on a 1 to 10 basis
(with 10 being excellent) based on analysis of this opportunity.
1. Time Investment
7
2. Start-up Costs
9
3. Gross Income Potential
8
4. Net Income Potential
8
5. Income in Relation to Investment
10
6. Stability
8
7. Overall Risk
9
8. Potential for Growth
10
Overall Potential for Success
8.63
POTENTIAL EARNINGS
The profit you can realize from a flower vending business
depends on several factors:
(1) The size of your market. Obviously larger metropolitan
areas supply the greatest source of potential customers,
therefore profits. However, your expenses in these larger markets
will probably be greater, because of larger inventory needed and
a bigger sales team to cover the market adequately.
(2) Good selling locations. Even if your market has a large
selection of potential customers your profits will be, at best,
minimal if you are not selling in the best locations to take
advantage of impulse buying. You have something that practically
everyone likes, flowers. But most everyone who buys flowers from
a vendor does so on impulse. To be successful, a flower vending
business must locate in areas of high-traffic, increasing the
possibility of impulse buying.
(3) Consistently marketable inventory. If you try to sell
flowers that are too old, wilted and faded, don't expect to do
much business. Make sure your entire inventory is always flower-
garden fresh and attractive. Also, price your flowers at
reasonable rates. That way, both you and your customers will be
happy.
(4) A professional sales approach. Whether you are running a
one-person flower business, with yourself as the only salesperson
or have several salespeople, a friendly, low-key sales approach
is essential. After all, you are selling flowers, not used cars.
Most people who buy flowers from a vendor are buying them for a
special person, and a friendly, non-aggressive salesperson has a
good chance of making a sale.
(5) The size of your investment. This does not just apply to
the amount of money you invest in the business. Your investment
also includes the time and effort you expend on making it a
success. As a weekend business, or operating on a daily basis, a
flower vending business will require a certain amount of your
time and effort above and beyond your monetary investment. The
amount of success and profits you can realize depends, in large
part, on how much you are willing to put into the business.
Some flower vending businesses have reported netting as much
as $75,000 a year. That kind of income usually requires a sales
team of half-a-dozen or more people working in a large
metropolitan area. Smaller markets should expect a net profit of
$10,000 to $20,000 per year.
The thing to keep in mind is that there is always a large
market for a flower vending business because flowers make
personal gifts year-round. Obviously, some months featuring
special days such as Valentine's Day, Easter and Christmas will
be better than others, but this is not a seasonal business. You
should be able to realize a healthy profit every month.
Your initial investment can be as low as $300, or as much as
$1,500, depending on what you can afford and the size of your
operation. It will most likely take several months until you get
adequately organized, and until you discover all the best selling
locations. But within a year you should be realizing a nice
profit with an efficiently operated flower vending business.
SUMMARY
A flower vending business is one of the best small
businesses you can get into, if you are short on investment
capital. Very little equipment is needed. You can use your own
garage or utility room as a preparation area and for storage. And
you can sell your inventory on location, from the back of your
own car, van or pickup. You may want to invest in a business
management course, if you are uncertain about your management
knowledge. But no practical experience is necessary to get into
this business.
The biggest expenses will be in inventory, which a good
month's sales will recover, any extra personnel you decide to
hire, and in any licensing fees you encounter. Advertising costs
for a flower vending business are extremely low.
Since flowers have universal appeal, there will always be a
sizable market for a flower vending business. If you operate
professionally, offering fresh, appealing flowers, establish a
good business relationship with dependable wholesalers, find the
best selling locations, and hire dependable, competent help,
there's every reason to be confident that a flower vending
business can be highly profitable.
SOURCES
Books:
The Encyclopedia of Floristry by Violet Stevenson
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